Latest news with #rentvesting
Daily Mail
13-08-2025
- Business
- Daily Mail
I bought a beautiful beachside home in Melbourne. It was the worst decision I've ever made
Owning property is a dream for many Australians - but for Nicole Sherwin, it turned out to be the 'worst financial decision' she'd ever made. The marketing professional purchased a 'beautiful' beachside apartment with her partner in Bayside, Melbourne in 2019. When her family outgrew the home, they turned to 'rentvesting' - a strategy where you rent in a location that suits your lifestyle while owning an investment property elsewhere. But the plan backfired, leaving the couple $30,000 out of pocket. 'Home ownership for me was hell,' the now-37-year-old said in a video. 'I bought a house in 2019 when I was pregnant with my first child because that's what society told me I was supposed to do. 'I made a decision to buy a property that I knew wasn't the ideal place.' The couple moved into their newly built apartment, and spent the next two years enjoying life as new parents to their newborn daughter. 'For two years, we lived in this beautiful new apartment. It was 200 metres from the beach. It was great, but then we got to the point where we outgrew it,' she said. 'So we decided to rentvest, which is such a sexy buzzword. It was not sexy.' Rentvesting is a strategy where individuals rent a home in a location that suits their lifestyle while owning an investment property in a more affordable area. According to Commonwealth Bank, rentvesting is an approach that allows people to live where they want without compromising on their investment goals. It's especially popular among younger buyers who are priced out of the housing market in their desired locations but still want to build equity through property ownership. However, things didn't go to plan for Nicole and her family after they found a tenant for their beachside apartment. 'About six months into the tenancy, I realised this property was actually not appreciating at all,' she said. So the couple decided to list their apartment on the market for sale. 'Every single weekend we would get six or seven couples coming through,' she said. 'The thing that got them every single time was the car stacker. Never buy a place with a car stacker, and that's not even the worst part.' A car stacker is a mechanical system used to store cars vertically, allowing multiple vehicles to be parked in locations where space is limited, such as apartment buildings. 'While the place is on the market, I have this incredible tenant in there and I had to keep her in there,' Nicole said. 'If she leaves, what are the odds of me getting a new tenant when this place is up for sale?' Unfortunately for the couple, a month on the market turned into almost two years. 'For years, I could not put her rent up. Bearing in mind that during these years, inflation is going crazy,' Nicole explained. 'My home loan had gone from 2 per cent to like 6.8 per cent and we couldn't pass on any of that.' Despite changing real estate agents after the property was listed on the market for 18 months, they still struggled to sell it. 'It's just the same story,' she said. But things took a turn for the worse when Nicole was unexpectedly made redundant. 'The stress I felt was immense,' she said. The property finally sold when it was nearly up to the two-year mark on the market. 'We get an offer on the place, I jumped at it,' she said. 'I just wanted to get rid of it because every month I was paying that mortgage, I was losing money. 'I settled, I could reinvest that money and start making money. In the end, I lost $30,000 just on the sale.' Nicole said they forked out thousands of dollars on real estate agent fees and listing their apartment on property listing websites. 'Plus every time there's an inspection, you have to compensate the tenant,' she said. 'But the relief... I go out and spend my disposable income now because I finally have some again.' Nicole - now a mum-of-two - said her family has just moved into a new rental property at their ideal location - something they believe is the 'best option' for their finances right now. 'The main reason being that I started my own business at the start of this year, and that in itself was such a huge financial risk that I didn't need a mortgage on top of that as I wasn't going to get a home loan anytime soon,' Nicole explained. 'So what we're doing is moving into a slightly bigger rental... What sucks about it is that I still want my dream home. 'I want that home that I can make my own fitted out so it fits perfectly for my family, and this isn't going to be that. It's nothing special, but it's the best option. 'But in the meantime, I will be putting my money in a diversified investment portfolio, which for me is such a safer investment than buying a house.'
News.com.au
22-07-2025
- Business
- News.com.au
Revealed: Aus trend helping buyers beat record house prices
As home prices hit their highest levels on record, one trend is rapidly gaining traction, giving hope to buyers priced out of where they live in. Anant Shah, a 34-year-old father of two, and his wife Sweta, are among thousands of Aussies turning to rentvesting as prices rise – a way to benefit from better value and strong capital gains elsewhere while remaining where you want to live. Million-dollar savings: Brisbane's bargain suburbs exposed Mortgage data shows investor lending is now outstripping the rise in owner-occupier loans, doubling in the last four years alone. Queensland saw investor loans rise 24 per cent rise in the last year with two in every five new loans in the state now going to landlords. For the Shahs, buying where they live in a rental in Brisbane's Chapel Hill was out of the question – with median prices there surging 85.2 per cent during the pandemic to $1.565m now. 'The budget to buy in the suburb I am renting in is huge because Chapel Hill is near the city. Houses here are like around $1.5m. That's why we shifted our focus to buy an investment property where it fits our budget and still rent here where we want to stay.' 'If you want to grow your money and portfolio, you have to do some investment. You can buy a $1.5m house as owner-occupier but it would make it very difficult to buy an investment property after that for a while because of the mortgage.' Inside billionaire Annie Cannon-Brookes' revamp of trashed island He said they picked Ipswich for their first investment because it still gave them the option to move there if it ever became necessary. 'We were also not too sure about this investment plan as a whole so we wanted to buy something nearby. This is about 20 minutes drive from where I'm living. Also if we had to change our plans or something happens, we could easily try to move there and still be close to work.' The strategy has done so well for them they now also have an investment property in New South Wales. Future Strategy managing director Gareth Croy said 'rentvesting' was not a new trend in places like Sydney where people had to service massive mortgages to stay in their own home. But, he added, that same reasoning of massive mortgages due to record prices was now seeing the trend rapidly gain popularity in once affordable areas like Brisbane. 'Silly' price paid for unliveable 100-year-old cottage 'Rentvesting is definitely here to stay,' he said, to the point where it was even making financial sense for first home buyers. 'It makes sense for young people to get onto the property ladder even if they can't afford to buy where they want to live.' This is seeing a growing number of young first home buyers choosing to miss out on state FHB grants to just get their foot in the door as investors. Mr Croy, who has offices on the Gold Coast, in Sydney and Melbourne, has now opened a multidisciplinary financial services office at Eagle Street with 30 staff to cope with demand.
News.com.au
23-06-2025
- Business
- News.com.au
Melbourne renter makes $350k investing in unseen homes
Khaysan Kimberlin lives in an inner city unit with her dog Willow, but owns three properties in growth suburbs she's never stepped foot in. The rentvestor in her 30s said buying in the blue-chip inner suburb she calls home would have derailed her entire financial strategy, that will eventually allow her to buy. 'I could sell everything and own a place in the suburb I want outright,' she said. 'But that would completely defeat the purpose. I'm not chasing the Aussie dream of a white picket fence, I'm building wealth for the long haul.' Ms Kimberlin has mapped out a long-term strategy with help from property investment advisers OpenCorp, entering the market in Perth and Moama where the numbers stacked up. Her portfolio of three properties, all delivering strong capital growth, has built equity but costs her less than $100 a week to hold. Assuming a 20 per cent deposit, for as little as $120 a week, using a rentvesting strategy, OpenCorp are securing properties for $600,000 –$700,000. With another rate drop anticipated, this holding cost could be as little as just $100 a week for a $600,000-$700,000 asset. Her portfolio of three properties has built equity but costs less than $100 a week to hold. Her Perth property alone has risen in value by $350,000 in four years, she said. 'I've never even seen it, that's how unemotional the process was,' she said. 'I wasn't buying a home, I was buying a stepping stone.' New data shows houses in Melbourne's inner city ring were out of reach for first-time buyers without family help, with even unit prices regularly topping $700,000. But Ms Kimberlin, who works in Melbourne's sporting precinct, said the area ticks every lifestyle box. 'I grew up in the country, so if I'm going to live in the city, I want to be right in the heart of it,' she said. 'I love being able to walk to work, to the gym, to games at the MCG, it's perfect for where I am in life.' While friends her age have taken out larger mortgages for homes in Melbourne's middle ring, Ms Kimberlin said she chose to prioritise flexibility and future growth. 'I have friends who stretched to buy and now can't go on holidays or even enjoy their home properly,' she said. 'I did it differently, and it's changed my life. 'I've built equity, I've kept my lifestyle, and I'm not tied down by a huge loan.' She said many people still got caught up in emotion when it came to their first home, aiming for a suburb first, then scrambling to make the numbers work. 'Your first property doesn't have to be your dream home, it just has to make financial sense. Then use it as leverage.'
Daily Telegraph
23-06-2025
- Business
- Daily Telegraph
How rentvesting helps young buyers enter property market
Millennials and Zoomers are tearing up the homeownership playbook, ditching the quarter-acre block in favour of something smarter — and far more flexible. Rentvesting, once a fringe strategy, is now going mainstream as more first-home buyers realise they can't afford to live where they want to buy. M R Advocacy director and buyers advocate Madeleine Roberts said the shift was being driven by affordability pressures and a sharper understanding of wealth-building. RELATED: Revealed: Bodybuilder's secret $7m+ Melb hide-out Vic bidding ban nears as tenants priced out Named: Cheapest Melb suburbs to buy home 'There's been a clear uptick in younger buyers choosing rentvesting, and it's largely out of necessity,' Ms Roberts said. 'Most entry-level buyers are priced out of the areas they actually want to live inm suburbs where the median house price is well above $1m.' Instead, they're renting in lifestyle-rich areas and buying investment properties in suburbs with better growth potential. 'They're arming themselves with the right information and realising rentvesting is a smart way to build wealth without giving up lifestyle,' she said. The M R Advocacy director said the strategy is especially popular among clients using self-managed super funds (SMSFs), with some choosing to buy property inside super for long-term gain. 'A lot of people are drawn to the idea of being in control of their financial destiny rather than relying on a fund manager,' Ms Roberts said. 'But the risks are real if you don't have the right strategy. 'Whether it's property or super, you can't just wing it.' OpenCorp chief executive Cam McLellan said the most successful investors were combining strategies and staying flexible. 'You don't have to choose super or property,' Mr McLellan said. 'Smart investors are doing both. That's how you future-proof, multiple levers working together,' Mr McLellan said. Mr McLellan said younger buyers often underestimated their potential. 'Too many buyers chase the wrong thing, it's not about the biggest house, it's about buying the best-performing asset and using your cashflow wisely.' Super Members Council chief executive Misha Schubert said super shouldn't be overlooked in long-term plans. 'Super is one of the most powerful long-term tools Australians have, but it's underused and under-understood by younger people,' Ms Schubert said. She added that super could complement newer strategies like rentvesting. 'Rentvesting shows how young Australians are finding smart ways to balance lifestyle and wealth creation. 'Super can play a part in that too, especially with voluntary contributions and tax-effective savings.' Even as buyers rewrite the rules Ms Roberts said flexibility, information and strategy are the new pillars of the new Great Australian Dream. 'We're heading in that direction,' Ms Roberts said. 'Property is more expensive, but people still want to participate in the market and rentvesting gives them a way to do that without giving up on lifestyle.' 'It's adaptable, it's flexible, and it's increasingly popular with younger Australians trying to get ahead.' Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: Developer's bold plan for $50m Melbourne site What sold this hero cop's family home Melb buyers heat up market in cold snap
News.com.au
23-06-2025
- Business
- News.com.au
How rentvesting helps young buyers enter property market
Millennials and Zoomers are tearing up the homeownership playbook, ditching the quarter-acre block in favour of something smarter — and far more flexible. Rentvesting, once a fringe strategy, is now going mainstream as more first-home buyers realise they can't afford to live where they want to buy. M R Advocacy director and buyers advocate Madeleine Roberts said the shift was being driven by affordability pressures and a sharper understanding of wealth-building. 'There's been a clear uptick in younger buyers choosing rentvesting, and it's largely out of necessity,' Ms Roberts said. 'Most entry-level buyers are priced out of the areas they actually want to live inm suburbs where the median house price is well above $1m.' Instead, they're renting in lifestyle-rich areas and buying investment properties in suburbs with better growth potential. 'They're arming themselves with the right information and realising rentvesting is a smart way to build wealth without giving up lifestyle,' she said. The M R Advocacy director said the strategy is especially popular among clients using self-managed super funds (SMSFs), with some choosing to buy property inside super for long-term gain. 'A lot of people are drawn to the idea of being in control of their financial destiny rather than relying on a fund manager,' Ms Roberts said. 'But the risks are real if you don't have the right strategy. 'Whether it's property or super, you can't just wing it.' OpenCorp chief executive Cam McLellan said the most successful investors were combining strategies and staying flexible. 'You don't have to choose super or property,' Mr McLellan said. 'Smart investors are doing both. That's how you future-proof, multiple levers working together,' Mr McLellan said. Mr McLellan said younger buyers often underestimated their potential. 'Too many buyers chase the wrong thing, it's not about the biggest house, it's about buying the best-performing asset and using your cashflow wisely.' Super Members Council chief executive Misha Schubert said super shouldn't be overlooked in long-term plans. 'Super is one of the most powerful long-term tools Australians have, but it's underused and under-understood by younger people,' Ms Schubert said. She added that super could complement newer strategies like rentvesting. 'Rentvesting shows how young Australians are finding smart ways to balance lifestyle and wealth creation. 'Super can play a part in that too, especially with voluntary contributions and tax-effective savings.' Even as buyers rewrite the rules Ms Roberts said flexibility, information and strategy are the new pillars of the new Great Australian Dream. 'We're heading in that direction,' Ms Roberts said. 'Property is more expensive, but people still want to participate in the market and rentvesting gives them a way to do that without giving up on lifestyle.' 'It's adaptable, it's flexible, and it's increasingly popular with younger Australians trying to get ahead.'
